The Division Bench of the Andhra Pradesh High Court comprising Justices A.V. Sesha Sai and Duppala Venkata Ramana was hearing a petition filed by the children and grandchildren of the deceased borrower challenging the order passed by the DRT in relation to the SARFAESI Act, 2002 and found the dismissal of Application under Section 17 of SARFAESI Act at the Preliminary Stage is unjustified. The High Court allowed the Writ Petition and set aside the order of DRT and directed the Securitization Application filed by the petitioners be numbered and required to proceed in accordance with the law.
The writ petition challenges the order passed by the Debts Recovery Tribunal (DRT) in relation to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
The petitioners, who are the children and grandchildren of the deceased, argued that the DRT's order was erroneous and contrary to the law. They contended that the DRT lacked the authority to reject their application under Section 17 of the Act at the preliminary stage.
The respondent bank maintained that the properties in question belong exclusively to the petitioners' father and that the objection raised by the DRT at the admission stage is valid.
The High Court was tasked with determining the validity and legality of the DRT's order. The High Court allowed the writ petition, setting aside the DRT's order and directing the Securitization Application to be numbered and proceeded according to the law.